Boracay casino operator still to undergo tedious process —PAGCOR

The plan of a Macau-based gaming firm to build a casino-resort in Boracay island still needs to undergo a "tedious" process of compliance before it can operate, the Philippine Amusement and Gaming Corp. said on Wednesday.

PAGCOR released the statement days after President Rodrigo Duterte announced that he was placing the world famous island under land reform.

Duterte also said that no casino-resort would be put up in Boracay.

PAGCOR in March granted a provisional license to Boracay Philippines Resort and Leisure Corp. (BPRLC) to operate a casino in Boracay.

"The provisional license is only the start of a very long and tedious process of compliance that every integrated-resort operator must go through before they can be issued by PAGCOR a Notice to Commence Casino Operations and eventually, a regular casino gaming license," PAGCOR said in a statement.

BPLRC is a subsidiary of Macau-based Galaxy Entertainment Group Ltd. and its local partner Leisure and Resorts World Corp. (LRWC).

"In the case of BPRLC, they have yet to submit a proof of ownership or lease of the land wherein the casino-resort will be built, a detailed Project Implementation and Development Plan, an escrow account, performance assurance, surety bond, financial statement, documentary requirements, among others," PAGCOR said.

The provisional gaming license granted to BPRLC was issued after it met all initial documentary requirements, including a Certificate of No Objection and a minimum investment commitment of not less than $300 million, according to the gaming regulator.

PAGCOR said AB Leisure Global Inc. - a wholly-owned subsidiary of LRWC - formally applied for a license to operate a casino in Boracay on August 3, 2017.

It added that received the company's letter of intent together with a Certificate of No Objection from the local government of Malay, Aklan.

PAGCOR said a deed of assignment between ABGI and BPRLC was signed on January 9, 2018.

"BPRLC’s application was favorably considered since Boracay falls under the Greenfield zone category, which refers to an area within rural provinces, cities or municipalities with high potential for tourism development with no existing casino," the gaming regulator said.

PAGCOR, however, said that regardless of the location the parties are only allowed to allocate not more than 7.5 percent of the total gross floor area for gaming.

"Moreover, allowable gaming facilities are restricted based on the number of hotel rooms - four standard room keys are required for every gaming table while two standard rooms are required for every three electronic gaming machines," it said.

LRWC earlier announced it acquired a a 23-hectare property in Barangay Manoc-Manoc, Boracay island for the casino-resort project.

PAGCOR said it ensured that its licensees would comply with pertinent laws, rules, regulations and ordinances promulgated by authorities relative to the establishment and operation of casinos.

Duterte had imposed a moratorium on new casinos effective January 13, 2018.

PAGCOR Chair Andrea Domingo said that the Boracay casino project was not covered by the moratorium as it applied and submitted requirements before it was imposed. —NB, GMA News